Crypto exchange Kraken has launched perpetual futures (perps) for 10 of its tokenized stocks, xStocks, which it acquired last year and which has since surpassed $25 billion in cumulative trading volumes. The perps track the Nasdaq and S&P indices, gold, and seven popular US stocks such as Apple, Nvidia and Robinhood.
The perps are only available outside the United States, as with the xStocks tokens, which track stock prices and are fully backed rather than providing stock ownership. Perps enable 24/7 trading on leverage of up to 20x in Kraken’s case, and support short positions.
A key feature of perps is the funding fee rate paid every 8 hours, with longs paying fees to the shorts, or vice versa. If the contract price is above the spot price, the longs pay, and vice versa. The fee rate helps to bring the futures price in line with the spot price.
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